British American Tobacco (BAT), the largest cigarette producer in Romania, announced on Thursday that it will invest EUR 800 million over the next 5 years in its factory in Ploiești. The investment will go not only into growing the factory’s cigarette production capacity but also into building a completely new manufacturing hall dedicated to producing Neostiks for glo. Overall, there will be an additional 7,0000-sqm production space.
The new production plant based in Ploiesti will be the only supplier of glo Neostiks in the European Union, as glo will be rolled out throughout Europe in the second half of 2018, with Romania thus becoming the third world production center of Neosticks, after Japan and Russia.
“BAT’s factory in Ploiești now reaches a completely new level of development. It will continue to be our second largest in Europe in terms of cigarette volumes, but it will now become the group’s European export center for Neostiks, the combustibles used with glo, our most advanced tobacco heating product. 85% of Neostiks produced in Romania will be exported to 15 other European countries”, said Ram Addanki, South Central European Area Director, British American Tobacco.
He praised Romania’s growing economy and the attractive tax rates and business environment, as well as the talent workforce. “We are here to reaffirm our commitment to the growth of Romanian economy. BAT has paid tax contributions worth EUR 13.7 billion in the past ten years, with EUR 1.7 billion last year,” Addanki underlined.
He also announced that production of glo Neosticks will start in several months.
“The latest investments will increase the cigarette production by 10% by the end of 2018, and by another 10% by the end of next year,” the SEE director of BAT said.
The new production space to accommodate the Neostiks production capabilities will also create 200 new jobs to be added to the more than 800 existing ones at Ploiesti factory.
”The 800 million euro to be invested in Ploiesti over the next 5 years are a proof to our commitment to Romania. Currently, 60% of our Romanian-made products leave to 45 other countries and this number will grow to 70% following these investments. We want to continue to invest in Romania and hope that the Romanian Government will provide the predictability that is essential for doing so. Since the tobacco black market is the most serious challenge not only to us and our investments, but also to government revenues and to consumers I would like to thank Minister Eugen Teodorovici for announcing his plans for securing the Romanian borders by the end of the year and to create a working group meant to identify the best legal solutions to the illicit problem,” added Ram Addanki.
The British American Tobacco Factory in Ploiesti is already one of the most technologically advanced manufacturing unit within the group at a global level, after an investment of almost 310 million EUR since the factory’s establishment almost 20 years ago. With the new production outputs, the BAT factory in Ploiesti is set to become one of the five most important BAT manufacturing units in the world.